Measures to protect bank customers from authorized payment scams

The Hong Kong Monetary Authority (HKMA) has issued new guidance for Authorized Institutions (AIs) to combat authorized payment scams (APS), which have caused significant financial losses in recent years. Key measures include implementing a comprehensive APS detection and monitoring framework, promptly alerting customers about high-risk transactions, applying effective risk mitigation strategies, and leveraging technology such as AI and network analytics for scam detection. AIs are encouraged to share intelligence and participate in anti-deception initiatives while enhancing customer education on scam prevention. These measures must be implemented by 30 June 2025.

Resources: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20241220e1.pdf